UPS stock fell 5% due to competitor concerns

United Parcel Service (UPS) shares fell over 5% on Tuesday. Investors are currently concerned about the logistics sector, which has been facing challenges. This decline followed disappointing earnings news from a competitor, FedEx. A key factor in UPS's stock drop was a reduced price target from an analyst. Ken Hoexter from Bank of America cut his price target for UPS shares from $133 to $129. Even with this adjustment, he still recommends buying UPS stock. The reason for the cut was not clear, but it comes during a tough time for the industry. Concerns about new tariffs from the Trump administration are adding to the worries about shipping volumes. Both UPS and FedEx are sensitive to these economic conditions. FedEx recently reported its earnings, which missed expectations despite revenue being higher than predicted. The company also lowered its financial outlook for the rest of the year. This raises fears that UPS might face similar struggles. Since FedEx is encountering difficulties, investors are cautious about UPS and other companies in the logistics sector.